News & Analysis as of

Non-Compete Agreements Employer Liability Issues Corporate Counsel

Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a... more +
Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -
Fisher Phillips

End of NY Legislative Session Leaves Employers Watching Key Workplace Bills

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New York’s two-year 2025-2026 legislative session hit its midpoint in June, with lawmakers wrapping up the first year by passing a slew of workplace-related bills that now await action from Governor Hochul. As federal labor...more

Jenner & Block

Client Alert: Employers Beware: Employees Are Seeking Damages for Unenforceable Noncompetes

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We have seen a rise in employees going on the offensive and suing their former employers for damages for not informing them that their noncompete is invalid under the applicable state law or for exaggerating the scope of a...more

Proskauer - Law and the Workplace

Virginia Strengthens Ban on Non-Competes for “Low-Wage Employees”

On March 24, 2025, Virginia Governor Glenn Younkin signed into law S.B. 1218, which amended Virginia’s non-compete law to expand the definition of “low-wage employees” with whom employers may not enter into non-competition...more

Clark Hill PLC

Washington Supreme Court Says Employers May Not Unreasonably Restrain Employees From Working for Competitors

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In a case of first impression, the Washington Supreme Court interpreted Washington law regarding noncompete agreements to broadly protect employees who earn less than twice the state minimum wage from unreasonable...more

Wilson Sonsini Goodrich & Rosati

Non-Solicitation Clauses Face Antitrust Scrutiny: Key Takeaways from St. Joseph's v. NAPA

A recent decision from the United States District Court underscores the antitrust risks of non-solicitation clauses in service agreements. In St. Joseph’s Hospital Health Center v. American Anesthesiology of Syracuse, P.C. et...more

Troutman Pepper Locke

Key Employer Updates for 2024/2025 – ‎Part Three: State Law Trends for Restrictive ‎Covenant Agreements

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As year-end nears, many employers are updating their key employment policies and agreements to ensure they align with ever-evolving federal, state, and local laws and changes to business needs. In Part One of this series, we...more

Husch Blackwell LLP

Understanding the NLRB General Counsel’s Memo on “Stay-or-Pay” Provisions: What Employers Need to Do by December 6

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On October 7, 2024, the Office of the General Counsel issued a new memorandum, GC 25-01, expanding her prosecutorial agenda to remedy what she sees as the harmful effects of non-compete agreements and so-called “stay-or-pay”...more

Skadden, Arps, Slate, Meagher & Flom LLP

FAQs About the Set-Aside of the FTC’s Ban on Noncompetes

In Ryan LLC v. Federal Trade Commission, the Federal Trade Commission’s (FTC’s) final noncompete rule was held to be “unlawful and set aside” by Judge Ada Brown of the U.S. District Court for the Northern District of Texas....more

Stoel Rives LLP

Navigating the Changing Landscape of Non-Compete Agreements: What Employers Need to Know

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The recent federal court ruling striking down the Federal Trade Commission’s (FTC) rule banning non-compete agreements has left many employers breathing a sigh of relief. However, this does not mean that non-compete...more

Sheppard Mullin Richter & Hampton LLP

California Court of Appeal Rules That Partial Sale of Business Can Bind Seller-Owner to a Noncompetition Agreement

In Samuelian v. Life Generations Healthcare, LLC, — Cal. App. 5th —, 2024 WL 3878448 (Cal. App. Aug. 20, 2024), the California Court of Appeal answered two long outstanding questions of California law concerning the...more

Sheppard Mullin Richter & Hampton LLP

Final Word on Final Rule? Texas District Court Eviscerates FTC’s Non-Compete Ban

On July 3, 2024, Judge Ada Brown of the U.S. District Court for the Northern District of Texas entered a limited, preliminary injunction barring the Federal Trade Commission (“FTC”) from enforcing its controversial Final Rule...more

FordHarrison

Federal District Court Blocks FTC's Noncompete Rule

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Real World Impact: Making good on her promise to make a ruling on the FTC Noncompete Rule on or before August 30, 2024, United States District Judge Ada Brown granted a motion for summary judgment that sets aside the FTC...more

Fisher Phillips

Two Recent Federal Court Decisions Conflict with Exception to FTC Non-Compete Ban: Your 3 Steps for Litigating Accrued Non-Compete...

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Even though the FTC’s impending rule that will ban most non-competition agreements specifically carves out claims for violations that accrue before the rule goes into effect – an exception that many federal courts have...more

Morgan Lewis

Federal Trade Commission Noncompete Clause Rule Litigation Update

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The Federal Trade Commission on April 23 approved a Final Rule banning almost all worker noncompete clauses (noncompete rule). Absent a court entering a nationwide injunction or vacating the rule, it is set to go into effect...more

Tannenbaum Helpern Syracuse & Hirschtritt LLP

The Federal Trade Commission’s Noncompete Rule – Dead or Alive?

On May 7, 2024, the Federal Trade Commission (“FTC”) published its final rule (the “Rule”) broadly banning most noncompete provisions in employment-related agreements and preventing employers from enforcing them. The Rule...more

McDermott Will & Schulte

FTC Final Noncompete Rule: Game Plan Checklist

With the Federal Trade Commission’s Final Rule that would ban noncompetes nationwide set to go into effect on September 4, 2024, assuming pending litigation doesn’t cause any delays, employers should begin planning now to...more

Blank Rome LLP

FTC Loses Round 1, but Its Non-Compete Ban Is Still Standing and Creating Uncertainty

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The United States District Court for the Northern District of Texas last week issued an order and opinion granting a preliminary injunction staying the effective date for enforcement of the Federal Trade Commission’s (“FTC”)...more

Skadden, Arps, Slate, Meagher & Flom LLP

FAQs About the FTC’s Broad New Ban on Noncompetes

When the Federal Trade Commission (FTC) issued its long-awaited final rule banning virtually all noncompete clauses between workers and employers, it also published 500-plus pages of commentary....more

Littler

July is Still the New January! Littler’s Workplace Policy Institute’s Mid-Year Legislative Report

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Hot off the press – here is Littler’s mid-year report!  As federal regulators, states and cities continue to pass new workplace regulations through the calendar year, we summarize each state’s notable labor and employment law...more

Seyfarth Shaw LLP

The FTC’s “Good Faith” Exception to the Non-Compete Ban: Pending Legal Challenges Are Not a Basis for Non-Compliance

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The FTC’s recently issued Final Rule banning non-competes for most workers prohibits an employer from (1) threatening to enforce a non-compete against a worker, (2) advising the worker that, due to a non-compete, they should...more

Seyfarth Shaw LLP

Colorado Amends Non-Compete Law To Address Potential Abuses of Training Repayment Agreement Provisions (TRAPS)

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On May 31, 2024, the Governor of Colorado signed House Bill 24-1324, titled “Attorney General Restrictive Employment Agreements,” putting into place a law to toughen protections for employees who are subject to abusive...more

Fisher Phillips

Washington Just Turned Many Non-Solicitation Agreements into Illegal Non-Competes: Tips on How You Can Still Protect Your Business

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Washington state law just changed in a way that might have made your company’s non-solicitation agreements unenforceable and illegal. Recent amendments to the state non-compete statute took effect on June 6 and significantly...more

FordHarrison

Noncompete News: Will New York City's Noncompete Ban Beat the FTC Final Rule to the Punch?

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As we recently reported, the Federal Trade Commission (FTC) issued its long-awaited final rule on April 23, 2024, banning virtually all noncompetition agreements between employers and workers. Lawsuits challenging the final...more

Mintz

[Event] Annual Employment Law Summit - May 15th, San Diego, CA

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The agenda for Mintz’s Annual Employment Law Summit taking place on May 15th in San Diego is now available! This year, we are thrilled to feature Hon. William McCurine as our keynote speaker. The segments this year include:...more

Orrick, Herrington & Sutcliffe LLP

5 Ways California Employers Can Stay Ahead of the Next Problem

Things move incredibly fast in today’s market, and with the pace of business and the occasional crisis, it’s hard to stay on top of employment compliance best practices. Based on what we’re seeing across a broad set of...more

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